Ontario to match GST holiday by removing provincial sales tax on some items

Ontario says it will match the federal government’s two-month GST holiday by removing provincial sales tax (PST) from items that are not currently covered by existing provincial rebates.

The move will provide “nearly $1 billion in additional relief for Ontario families” and comes following “extensive discussions” with the federal government, Ontario Finance Minister Peter Bethlenfalvy’s office said in a statement.

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The latest affordability measure comes on top of previously-announced $200 cheques that are set to be mailed out to Ontario taxpayers in the new year.

Premier Doug Ford announced the cheques last month, saying life had become “too costly” for Ontario residents.

The federal government then followed suit with an announcement that they would send $250 cheques to Canadians who were working in 2023 and earned less than $150,000.

Prime Minister Justin Trudeau also said that the federal government would provide a two-month GST holiday on items like restaurant meals, diapers, toys, snacks and video games to help Canadians struggling with the cost of living.

The tax holiday is set to run between Dec.14 and Feb. 15, covering off many purchases around the busy holiday shopping season, as well as Valentine’s Day.

Critics have said that both governments are bribing Canadians with their own cash ahead of expected federal and Ontario elections, and that the money could be better spent on social programs for those who need it the most. However both Ford and Trudeau have maintained that the measures are aimed at affordability amid a cost of living that has skyrocketed for many.